062009: Internet gaming firm contests regulation

Saturday, June 20, 2009 | MANILA, PHILIPPINES

Corporate News

On online gaming firm has asked the National Telecommunications Commission (NTC) to lift a cease-and-desist order on the company, claiming regulators have no jurisdiction.

Mygame.ph, Inc. Vice-President Jewoo Yeom, in a filing before regulators, said the company should not be administratively sanctioned by the commission for offering Internet or online gaming services without the required Value Added Services (VAS) Certificate of Registration.

"Mygame.ph is 100% foreign-owned corporation, it is not eligible at the very outset to secure VAS registration from NTC because it requires that a VAS provider should at least be 60% Filipino-owned. Thus, the respondent was and continues to be ineligible to register as a VAS provider," he said.

There was also no clear rule or regulation clearly defining the term VAS, stating that online gaming is classified as such, and registration is subject to a nationality requirement, he added.

Mr. Yeom said the VAS definition under the Public Telecommunications Policy Act or Republic Act (RA) 7925 is "an entity which, relying on the transmission, switching and local distribution facilities of the local exchange and inter-exchange operators, and overseas carriers, offers enhanced services beyond those ordinarily provided for by such carriers."

He also claimed online gaming services are also not classified as "enhanced services" as provided under the implementing rules of RA 7925, which states that "enhanced services refers to a service which adds a feature or value not ordinarily provided by a telecommunications entity such as format, media conversion, encryption, enhanced security features, computer processing, and the like."

Mr. Yao further argued that online gaming is not a public utility and should not be considered part of NTC jurisdiction.

"There is no law enacted by the Congress which requires VAS to be deemed a public utility," Mr. Yeom added. — J.F. de Guzman

http://www.bworldonline.com/BW062009/content.php?src=1&id=044